This page has been archived and commenting is disabled.

The Dark Pool Knight Capital Plummets

Tyler Durden's picture





 

 

Forget Bane, Knight is going dark:

  • *KNIGHT CAPITAL EXPERIENCING DELAY IN PROCESSING STOCK ORDERS
  • *KNIGHT CITES 'TECHNOLOGY ISSUE' FOR PROCESSING DELAYS
  • *KNIGHT TELLS CLIENTS TO EXECUTE TRADES ELSEWHERE FOR NOW

And the share price is now down 23%...

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 08/01/2012 - 11:48 | Link to Comment Precious
Precious's picture

Chinese are probing their security perimeter for the day the United States of Israel strikes Iran.

Wed, 08/01/2012 - 11:49 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

"Everyone run to safety... http://www.treasurydirect.gov/ !!!"

-Timmy

 

Wed, 08/01/2012 - 11:57 | Link to Comment malikai
malikai's picture

PPT to battle stations immediately!

Wed, 08/01/2012 - 12:03 | Link to Comment economics9698
economics9698's picture

“This is it!”  What a asshole. 

Wed, 08/01/2012 - 14:02 | Link to Comment iDealMeat
iDealMeat's picture

Fun Little nugget:

 

William L. Bolster
Lead Director, Knight Capital Group, Inc., Retired Chairman
and Chief Executive Officer, CNBC International

 

Nominating and Corporate Governance Committee, Chair
Compensation Committee, Member
Finance and Audit Committee, Member

William L. Bolster, Lead Director of the Company, has served on the Board since November 2003. Mr. Bolster was Chairman and Chief Executive Officer of CNBC International from July 2001 to November 2003 and was a consultant to CNBC International until February 2004. Prior thereto, he was President of CNBC from January 1996 until July 2001. Previously, Mr. Bolster was President and General Manager of WNBC-TV in New York. Mr. Bolster received a B.A. in Business Administration from Loras College in 1967.

Wed, 08/01/2012 - 21:39 | Link to Comment StychoKiller
StychoKiller's picture

Yelling "Fire!" would get you arrested...

Wed, 08/01/2012 - 12:17 | Link to Comment hannah
hannah's picture

"The witnesses also said no shots were fired and no shell casings were found, the affidavit said."

 

this kind of bullshit was in the article. no shell casing found....there wasnt even a gun. the idiot was just yelling. this has nothing to do with firearms but the media has to have a gun in the story...evn thou there wasnt one.

Wed, 08/01/2012 - 12:07 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

Serious ? I fully intend to cash out my 401k is now the time or is ben gonna pump it up ?

Wed, 08/01/2012 - 12:41 | Link to Comment IndicaTive
IndicaTive's picture

Definitely.

Wed, 08/01/2012 - 13:08 | Link to Comment Paul Atreides
Paul Atreides's picture

Cash out, buy physical metals asap!

Wed, 08/01/2012 - 12:30 | Link to Comment Tippoo Sultan
Tippoo Sultan's picture

Down 23%...now it appears the algos are feeding upon one of their own. Akin to a torpedo homing in on the very same boat which launched it.

We will hear hull cavitations soon enough.

Wed, 08/01/2012 - 11:54 | Link to Comment slaughterer
slaughterer's picture

KCG is a large MM for OTC stocks.  Things went crazy there on the pink sheets this morning.  Wonder if KCG is the next MFG/Peregrine disaster.

Wed, 08/01/2012 - 12:10 | Link to Comment malikai
malikai's picture

Reminds me of the BATS "incident". Probably too much volume or some failed systems somewhere, triggered by your friendly local HFT.

Usual suspects.

Wed, 08/01/2012 - 12:12 | Link to Comment walküre
walküre's picture

Correct and the OTC has been pretty much illiquid for the last 6 months. It's finally catching up with the MM.

No volume in OTC is the death of KCG.

Great news.

Wed, 08/01/2012 - 12:30 | Link to Comment Daily Bail
Daily Bail's picture

I've hated Knight Trading since 1999-2000 when we were shorting all the dotcoms and these fuckers were always faking bids on the Level III screens.  I got so pissed off one day I called the CEO and yelled at him for 2 minutes about market manipulation and then I hung up and we shorted 50,000 shares of his company as our way of saying "Fuck You, prick."

We made a little bit and closed the trade a week later.

My fav story was shorting Redback Networks in 1999 - they announced a huge secondary that would allow insiders to dump millions of shares, but instead of going down, the stock rallied because Cramer was long Redback at his hedge fund and he had used 2 CNBC appearances that day to say how fucking great the secondary was because it meant that institutions would now be able to get into the company in size.

So I emailed CNBC reporter Bob Costello, (whom I had never communicated with before) with a long screed about how the secondary would DILUTE, and that cramer was a fucking monkey spouting garbage.  And 15 minutes later, it was Costello's turn to report from the NAZ, and he immediately said 'I have this email just in from a Santa Monica based fund manager' and he proceeded to read my email ripping Redback and (Cramer the monkey) word for word on the air for about 45 seconds.

Meanwhile, I was sitting in my apartment in Santa Monica, on my couch, in my underwear.  We were not really a hedge fund.  I had about $15 million under management at the time.  And I had just forged my way into a breathless Tom Costello CNBC report calling Jim Cramer a monkey.

I'm pretty sure it was the happiest moment of my life.

Wed, 08/01/2012 - 12:33 | Link to Comment Tippoo Sultan
Tippoo Sultan's picture

"Jim -- care for a banana ?"

+1. Great anectdote.

Wed, 08/01/2012 - 13:54 | Link to Comment Rahm
Rahm's picture

Its posts like these I wish I could give you more than a single +1

Wed, 08/01/2012 - 15:35 | Link to Comment Daily Bail
Daily Bail's picture

Bob Costello was the grandson of Lou Costello (of Abbot & Costello).  He was one of the good guys at CNBC during the bubble mania.  Always skeptical about the valuations and apparently willing to throw Cramer under the bus on the word of a small-time fund manager he had never met.

By the way, Redback eventually traded down to $1 (in 2003 or so) after hitting at least $200 on the high side in 2000.

Wed, 08/01/2012 - 11:42 | Link to Comment resurger
resurger's picture

Charles Manson sends his regards ...

Wed, 08/01/2012 - 11:44 | Link to Comment Dr. Engali
Dr. Engali's picture

Hmmmm where have I heard this before? Oh yeah the flash crash. Damned fat finger.

 

http://money.msn.com/top-stocks/post.aspx?post=84cf7386-3e10-4053-8dc3-0046efc47acc

Wed, 08/01/2012 - 11:49 | Link to Comment Cdad
Cdad's picture

It's not looking good.  Underlying individual stocks are being sold...quite hard in some instances.  SPY seems clueless, as always.  I suspect we will find ourselves in illiquid circumstances shortly.

**additional: it seems like the coal stocks have run out of sellers, finally...one year later**

Wed, 08/01/2012 - 11:53 | Link to Comment HoofHearted
HoofHearted's picture

Jon Corzine may need to plan for a table of 3 now....and more party guests to join him soon.

Wed, 08/01/2012 - 12:00 | Link to Comment Manthong
Manthong's picture

What's that?

Quants listed Indian Power Grid experience on resume'?

Wed, 08/01/2012 - 11:43 | Link to Comment Timmay
Timmay's picture

Disintegration...

Wed, 08/01/2012 - 11:44 | Link to Comment fireangelmaverick
fireangelmaverick's picture

Those that live by the Algo shall die by the Algo .....Book Of Bankers Chapter 2 Verse 7

 

Wed, 08/01/2012 - 11:51 | Link to Comment Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Like day and Knight!

Wed, 08/01/2012 - 12:29 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Ultimate irony = algos invented to fend off human tendency to panic in the marketplace, algos applied to market, algos subsequently panic themselves.

And Man gazed deeply into the silvered glass that He fashioned and saw ... Himself.

Wed, 08/01/2012 - 11:46 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Pretty soon we will be reduced to trading beads and trinkets with the other locals.

Or at least PMs for food and other stuff.

Wed, 08/01/2012 - 11:55 | Link to Comment Agent P
Agent P's picture

Beanie Babies

Wed, 08/01/2012 - 12:30 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

long wampum!  (someone on ZH has already said this before, I know it)

Wed, 08/01/2012 - 11:45 | Link to Comment Lost Wages
Lost Wages's picture

This is what you get for running your trades on a Commodore 64.

Wed, 08/01/2012 - 11:50 | Link to Comment poldark
poldark's picture

:0)

Wed, 08/01/2012 - 11:58 | Link to Comment Haager
Haager's picture

So you say that I can give up waiting for an Atari conversion?

Wed, 08/01/2012 - 12:19 | Link to Comment Lost Wages
Lost Wages's picture

They are upgrading to a Packard Bell PC Clone with an 8 MB hard drive.

Wed, 08/01/2012 - 12:38 | Link to Comment machinations of...
machinations of men-do's picture

Best price on 4K DRAM!  6502's & Z80's, too!

Gold plated leadframes galore!

Oh, for that seventies glow...

Some trouble getting my 8" floppy up, though...

Wed, 08/01/2012 - 13:40 | Link to Comment sunaJ
sunaJ's picture

You're deluding yourself.  It's only a 5" floppy.

Wed, 08/01/2012 - 15:28 | Link to Comment Lux Fiat
Lux Fiat's picture

Try cassette tapes.

Wed, 08/01/2012 - 12:04 | Link to Comment americanspirit
americanspirit's picture

If all these criminals were limited to running on Commodore 64s at least it would limit the damage they could do.

Wed, 08/01/2012 - 12:16 | Link to Comment malikai
malikai's picture

300 baud!

Wed, 08/01/2012 - 13:46 | Link to Comment sunaJ
Wed, 08/01/2012 - 15:46 | Link to Comment malikai
malikai's picture

Let's meet in the middle:

All HFTs must submit orders by 9600 FAX.

Wed, 08/01/2012 - 13:48 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

The glory days of 300 baud.

Press on pioneer.

Wed, 08/01/2012 - 21:44 | Link to Comment StychoKiller
StychoKiller's picture

Got a used VicMODEM I can sell ya...

Wed, 08/01/2012 - 11:45 | Link to Comment pods
pods's picture

I bet ya they are waiting for Indian IT customer service to pick up so they can come back online.

pods

Wed, 08/01/2012 - 15:40 | Link to Comment ZeroAvatar
ZeroAvatar's picture

"This is Peggy, how can I help you?"

Wed, 08/01/2012 - 11:45 | Link to Comment RobotTrader
RobotTrader's picture

Wow, are you sure that isn't a junior gold stock?

Wed, 08/01/2012 - 11:47 | Link to Comment Dr. Engali
Dr. Engali's picture

Reminds me of your mom...always going down.

Wed, 08/01/2012 - 11:50 | Link to Comment Vincent Vega
Vincent Vega's picture

Good one, Dr E.  And don't forget: fruit never falls far from the tree.

Wed, 08/01/2012 - 12:07 | Link to Comment SheepDog-One
SheepDog-One's picture

The shitapple never falls far from the tree. Shit Apple - YouTube

Wed, 08/01/2012 - 13:10 | Link to Comment Paul Atreides
Paul Atreides's picture

"I am the liquor"

Wed, 08/01/2012 - 21:45 | Link to Comment StychoKiller
StychoKiller's picture

Watch out for that "water of life" stuff...

Wed, 08/01/2012 - 12:00 | Link to Comment SheepDog-One
SheepDog-One's picture

Goin down like Robo at the Saturday nite 'Boner Jam' at the Blue Swallow Bar.

Wed, 08/01/2012 - 12:46 | Link to Comment Biggvs
Biggvs's picture

A "White Swallow" would seem more appropriate. Or perhaps the Blue Oyster?

http://www.youtube.com/watch?v=tTJMerul33E

Wed, 08/01/2012 - 11:52 | Link to Comment oddjob
oddjob's picture

Like Netflix resources?

Wed, 08/01/2012 - 11:57 | Link to Comment slaughterer
slaughterer's picture

I wondered when the NFLX Schadenfreude would hit ZH: new 52-week low today for good ol NFLX.  The stock you can always count on going down.  

Wed, 08/01/2012 - 11:45 | Link to Comment Never One Roach
Never One Roach's picture

Glad my money is safe...diversified with 50% PGF and MFG and the other 50% in FB and Zynga.

I read 'diversification' is a good idea...safety when you diversify, right?

Wed, 08/01/2012 - 11:46 | Link to Comment Sabibaby
Sabibaby's picture

Where's our Knight in Shinning Armour?

Wed, 08/01/2012 - 11:46 | Link to Comment Dr. No
Dr. No's picture

Seems like someone entered a alogorithm which sells all shares to push price down 25%.  Who would have thought of that?

"theres no money here!!"

"Then why are all you brokers here?!"

(forgive my memory of the direct quotes).

Wed, 08/01/2012 - 11:47 | Link to Comment Godisanhftbot
Godisanhftbot's picture

 this is what you get when you pay your programmers $10 an hour. They need to pay them at least $15.

 Better yet , pay them the VWAP of the rate the CFTC investigators get.

 

Wed, 08/01/2012 - 11:53 | Link to Comment unununium
unununium's picture

Broker: "This is a stock exchange. There's no money to steal!"

Bane (through mask): "Oh yeah? Then what are YOU doing here?"

Wed, 08/01/2012 - 11:47 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

I'd love to see another 23% dump in FaceSuck right now.

Wed, 08/01/2012 - 11:47 | Link to Comment GraveyardSpiral
GraveyardSpiral's picture

Wait, does this mean that I should BTFD?   Somebody please tell me when down is bad again!!!  /sarc

Wed, 08/01/2012 - 11:56 | Link to Comment Debt-Is-Not-Money
Debt-Is-Not-Money's picture

There's never a computer "glitch" when the market is going up!

Wed, 08/01/2012 - 11:48 | Link to Comment Vincent Vega
Vincent Vega's picture

Is it just me or does it seem like 'technology issues' seem to coincide with Fed meetings, ECB announcements, etc...  Maybe it's India's fault; I hear they are having some power issues.

Wed, 08/01/2012 - 11:48 | Link to Comment Frank N. Beans
Frank N. Beans's picture

quick Robin, to the batmobile!

Wed, 08/01/2012 - 14:49 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

But it lost a wheel, and the Joker got away!

Wed, 08/01/2012 - 15:44 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Adds a whole new meaning to yelling 'FIRE' in a crowded theatre!

Wed, 08/01/2012 - 11:49 | Link to Comment Meesohaawnee
Meesohaawnee's picture

thought you all would like a good laugh from todays Daily Yahoo finance embarassment. Marissa has her work cut out.

http://finance.yahoo.com/blogs/breakout/nevermind-fed-stocks-going-higher-says-cote-145608432.html

Wed, 08/01/2012 - 11:53 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Yahoo Finance < CNBC

Wed, 08/01/2012 - 12:43 | Link to Comment Jay Gould Esq.
Jay Gould Esq.'s picture

Actually, Yahoo Finance = CNBC. They have quite the symbiotic "partnership" now, proudly exhibited on YF's front page.

Wed, 08/01/2012 - 13:46 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

The comments section on Yahoo Finance is almost as bad as YouTube's as far as idiotic posts by morons. I can't see where CNBC's reputation will be helped by associating with the Hoi Polois at Yahoo. Dumb and dumber.

Wed, 08/01/2012 - 11:49 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Heat Death of the HFT Alliance.

Wed, 08/01/2012 - 11:51 | Link to Comment HaroldWang
HaroldWang's picture

They might want to get that fixed before, say, 2:15 today.

Wed, 08/01/2012 - 11:53 | Link to Comment alien-IQ
alien-IQ's picture

One down...how many more to go?

Wed, 08/01/2012 - 11:56 | Link to Comment Temporalist
Temporalist's picture

"...he knows who I am.  I am the Night Rider!  I am the chosen one! The mighty hand of vengeance sent down to strike the un-roadworthy."

http://youtu.be/gKPEOfybQak?t=56s

Wed, 08/01/2012 - 12:07 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

oh, go fly a kit

Wed, 08/01/2012 - 12:27 | Link to Comment blunderdog
blunderdog's picture

We'd all do well to recall the Night Rider died crying...

When I look up in the night sky, I remember.

Wed, 08/01/2012 - 11:55 | Link to Comment drivenZ
drivenZ's picture

uhhh, I'm going to go out on a limb here and say...BUY knight

 

they have a tech glitch and the stock drops 20%? sounds like a knee jerk overshoot to me. 

Wed, 08/01/2012 - 11:58 | Link to Comment SheepDog-One
SheepDog-One's picture

Well you go buy it then.

Wed, 08/01/2012 - 11:59 | Link to Comment drivenZ
drivenZ's picture

I am

Wed, 08/01/2012 - 16:38 | Link to Comment SheepDog-One
SheepDog-One's picture

Wow nice buy there drivenZ only down another 10%!

Wed, 08/01/2012 - 11:57 | Link to Comment JLee2027
JLee2027's picture

Wait until the entire market does this - all at once.

Wed, 08/01/2012 - 11:58 | Link to Comment Unprepared
Unprepared's picture

"We're having the best year since 2003 and the second-best year since 1998, so investors need to get into the market regardless of what the Fed does," says Doug Cote, chief market strategist at ING Investment Management

Wed, 08/01/2012 - 12:04 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

thank goodness! 

more [client account vaporization?] data for the "volkerRule", now approaching Liberty itself for being "honored in the breach" by criminals with taxmoney and total air superiority and fire power

...BiCheZ!

Wed, 08/01/2012 - 12:00 | Link to Comment boh knows
boh knows's picture

Market Maker no more. More like Market shaker. This is what you get for manipulating the spreads of securties all day every day.

Wed, 08/01/2012 - 12:04 | Link to Comment Darkside
Darkside's picture

I just wonder if their problems have to do with this

http://www.valuewalk.com/2012/07/knight-securities-likely-to-accept-nasd...

Wed, 08/01/2012 - 12:06 | Link to Comment DeFeralCat
DeFeralCat's picture

There is a posting up for an Operations Manager in Jersey City. The requirement is the thing you worked on before had to stay up and running from at least 9:30 to 9:33.

Wed, 08/01/2012 - 12:08 | Link to Comment SheepDog-One
SheepDog-One's picture

Why is it NEVER called a 'technical malfunction' when markets go UP 5%??

Wed, 08/01/2012 - 12:10 | Link to Comment walküre
walküre's picture

Is the power still out in India?

Hillarious. The economies are crashing all across the world and sheep are still glued to their TeeVee listening to Bagdad Bob's army about how more of the same QE would stave off a recession.

Money is worthless. The confidence is fleeting. Why is the Last One supposed to turn off the lights? I mean who cares if the lights stayed on when everything goes to shit? Is collapse in a dark room a better event? Which brings me to my initial question.

Do Indians care if the someone suggested there to the Last One to turn off those lights?

Edit: Power in India is back on. For now. But nobody knows what happened.

 

Wed, 08/01/2012 - 12:14 | Link to Comment SheepDog-One
SheepDog-One's picture

The sheeple will never change, theyre shit apples.....when a shit apple fall from the tree and grows up in a field of shit, it becomes a shitapple tree, no question about it.

Shit Apple - YouTube

Wed, 08/01/2012 - 12:20 | Link to Comment walküre
walküre's picture

You're on to something. You could take a time machine and bring back a guy from ancient Greece, pluck him in front of a TeeVee with a bowl of popcorn and he'd be sitting there and believing it all. No evolution whatsoever. We're never escaping this planet of Dumb. Creator either played a really sick joke or random atoms of shitapples crashing millions of years ago and the result is shitapples.

Wed, 08/01/2012 - 21:50 | Link to Comment StychoKiller
StychoKiller's picture

"We get signal:
Gentlemen, all your circuits (base) are belong to us
you are on the way to destruction
what you say!"

Wed, 08/01/2012 - 12:11 | Link to Comment insanelysane
insanelysane's picture

Programmers are on vacation.

Wed, 08/01/2012 - 12:19 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

Programmers are in India.

Wed, 08/01/2012 - 12:14 | Link to Comment spanish inquisition
spanish inquisition's picture

We won't know how serious this is until Jamie checks his pockets.....

Wed, 08/01/2012 - 12:18 | Link to Comment john_connor
john_connor's picture

"This is only a sentencing hearing, and your choice is exile or death."

Wed, 08/01/2012 - 12:48 | Link to Comment tekhneek
tekhneek's picture

"Death."

"Okay. Sentenced to death then... by exile."

Wed, 08/01/2012 - 12:24 | Link to Comment vas deferens
vas deferens's picture

For all of you who trade through Scottrade.com Rodger O. Riney (owner of Scottrade) was a founder and board member of KCG. 

http://www.knight.com/investorrelations/secText.asp?id=0001193125-06-073441&doc=1&num=8 

Rodger O. Riney the next Russell Wasendorf Sr. ?? 

Wed, 08/01/2012 - 12:47 | Link to Comment tekhneek
tekhneek's picture

One word comes to mind: "Vaporized"

Wed, 08/01/2012 - 15:09 | Link to Comment Overflow-admin
Overflow-admin's picture

The Dark Knight faces his destiny... spoil?

Wed, 08/01/2012 - 15:34 | Link to Comment Lux Fiat
Lux Fiat's picture

Perhaps Knight should consider sponsoring the US diving team, assuming they have any spare cash lying around after today.  New customer service motto "We'll go off the deep end for you".

Do NOT follow this link or you will be banned from the site!